Tenet (TEN) is the foundational token for the Tenet blockchain, a unique platform compatible with the Ethereum Virtual Machine (EVM) and built on the Cosmos SDK. This blockchain is designed to allow users to unlock the value of their staked assets and use them across a native DeFi ecosystem, which is governed by Tenet's validator network.

Tenet operates on a unique mechanism known as Diversified Proof of Stake (DiPoS). In traditional PoS blockchains, only one native asset can be staked. However, with DiPoS, multiple assets from various chains can be staked on a single blockchain. This creates a symbiotic economic relationship through interchain staking, benefiting all participating chains and offering users a broader spectrum of assets and yield opportunities.

When users stake their TENET tokens with a Tenet Staking Provider, they receive an LSD of TENET, termed tTENET. This tTENET can then be locked to produce veTENET, which stands for vote-escrowed TENET. The longer the tTENET is locked, the more veTENET one receives. veTENET plays a pivotal role in the Tenet ecosystem, granting users voting power over governance, reward gauges, and determining the distribution of native rewards.

Tenet employs a tokenomic model inspired by veTokenomics (vote-escrowed tokenomics). The primary purpose of this model is to incentivize users within the Tenet DeFi ecosystem and engage as many users as possible in its governance. By locking tTENET to produce veTENET, users can participate in the governance of the ecosystem, influencing decisions and benefiting from protocol revenues across all Tenet DeFi applications.

Holders of veTENET enjoy multiple streams of income. They receive a portion of validator rewards, DeFi protocol rewards from the Tenet ecosystem, and a share of fees from various Tenet applications. Additionally, veTENET holders receive 50% of transaction fees at the network level and other fees within the Tenet ecosystem, such as mint and redeem fees on Lucidity, swap fees on the native DEX, and fees on the lending platform. Holding veTENET also boosts yields across the Tenet ecosystem, from staking on validators to providing liquidity on the DEX.